Premium ArticleSellers Swarm, Bulls Unfazed

Selling pressures finally struck this past week on Wall Street, but much to the bears’ frustration the pullback was short-lived and welcomed by eager bargain buyers on Friday. The bears crept onto the scene this past Wednesday after ADP payroll data came in worse-than-expected; pessimistic suspicions proved true after Friday’s monthly employment report left many disappointed, although buyers were quick to step in after the early morning sell-off [see Free 7 Simple & Cheap All- ETF Model Portfolios].

Actionable ETF Trade Ideas

Our picks from Monday’s Insider posted solid performance results even after unexpected selling pressures rattled investors’ confidence this past week. Below, we highlight how our trade ideas fared during the week [sign up for a free trial of ETFdb Pro to get actionable ETF ideas every Monday, as well as access to more than 50 all-ETF model portfolios].

This recommendation turned against us this week as our bullish suspicions for the precious yellow metal proved incorrect right from the start of the week. GLD traded sideways on Monday and gapped lower the following day, forcing us to incur a loss as our stop-loss at $153 a share was almost immediately triggered. Although this was discouraging to see, our disciplined exit strategy turned out for the best as GLD sank even lower on Wednesday and failed to recoup its losses by the end of the week.

Trade #2 Short IYT: Up 5.9%

This recommendation was spot on as our bearish suspicions were very well timed with the broad market. IYT kicked off the week on a red note and selling pressures were quick to follow after this ETF broke below its steep trend line on Tuesday. Bearish pressures persisted for the rest of the week here and this ETF hit our price target of $105 a share on Friday morning, leaving us with a hefty profit amid the panic selling on Wall Street.

Trade #3 Long MOO: Down 1.8%

This trade drifted sideways from the start of the week as it failed to rebound off our outlined support level. Selling pressures on Wednesday knocked MOO below our stop-loss at $53 a share, leading us to exit the trade and incur a minor loss on the week here.

Selling pressures on Wall Street spilled over into other corners of the global equity market as evidenced by the negative performances among our regional strategies. Year-to-date, the Global Titans Portfolio remains at the top of the performance list while our Africa-Centric Portfolio is still the laggard in the group.

The majority of our themed strategies ended up in red territory for the week given their predominantly equity-focused portfolios. Year-to-date, the Baby Boomers Portfolio continues to lead the way with double-digit gains while the GLD-Free Gold Bug Portfolio is still the worst performing one by far.

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